Calling all Aussies!
Rental Property Investor · Navarre, FL · Member since 2019 · 913 posts · 640 votes
There are a few of us Aussies here on BP, and I'm interested in hearing from those that are doing the long distance investing thing - like not just out of state, but across the ocean and investing in the USA. Anyone can join in. But looking for answers on getting financing to buy if someone lives in Australia and wants to buy in the USA. If you've got thoughts, answers or guidance, let us know, mate!
@Iris Cruz I know you have questions. @Laurence K. I know you have experience and answers.
Thanks in advance from the Aussies.
@Michael King . Great idea for a thread, I’m sure there are quite a few Aussies on this site.
I started investing in the USA in 2014 . So far I have acquired 12 doors in Ohio. All have been purchased 100% with cash. I have found a few finance possibilities but they have been unpalatable in terms of interest rate and points.
I’m happy to answer any questions anyone has.
G’day
Just joined the site today and was invited to join this thread.
My name is Bryan from East Coast Oz have 5 investment properties, 2 in WA , 2 in NSW and one in Vic .
Also have properties in the Philippines.
Looking at doing some pthing with my sister-inlaw who lives in NJ ..maybe buy renovate and rent to sell .
Cheers
@Michael King . Great idea for a thread, I’m sure there are quite a few Aussies on this site.
I started investing in the USA in 2014 . So far I have acquired 12 doors in Ohio. All have been purchased 100% with cash. I have found a few finance possibilities but they have been unpalatable in terms of interest rate and points.
I’m happy to answer any questions anyone has.
I've been investing in the US since 2015 and Laurie was one of the first people to help me.
Glad to see other Aussie's on here rather than chasing (mostly) negative cash flow in Australia.
Jordan and Laurie are you guys in the US? I'd like to hear details about how you got started here if you'd be kind enough to share.
@Michael King . Great idea for a thread, I’m sure there are quite a few Aussies on this site.
I started investing in the USA in 2014 . So far I have acquired 12 doors in Ohio. All have been purchased 100% with cash. I have found a few finance possibilities but they have been unpalatable in terms of interest rate and points.
I’m happy to answer any questions anyone has.
I've been investing in the US since 2015 and Laurie was one of the first people to help me.
Glad to see other Aussie's on here rather than chasing (mostly) negative cash flow in Australia.
Jordan and Laurie are you guys in the US? I'd like to hear details about how you got started here if you'd be kind enough to share.
Hi Michael,
I'm based in Australia.
The short version...
My finance background got me started in the US. Back when the dollar was at parity, many clients were utilizing equity in Aussie property to buy in the US. I slowly built a team on the ground from there.
Thats one thing I want to look into, unlocking some equity from a property in Oz and investing that into property in the US. In November I made an under priced cash offer on a 3 bedroom house in Geraldton W.A. with the intention Of renovating the property to rent and then later resell or Unlock the equity and reinvest in the area. But after getting a contractor to do an inspection of the property and running the numbers , I decided not to go through with it.
My wife and I would have driven over there from the east coast and stayed in the house whie we did the renovations our selves. The house was listed at $45k , I offered $35k and they came back with a counter offer of $40k . With closing + renovations costs and the cost of time and travel to drive over, I would have come out at an all in cost of around 60-65k. The comps in the area were around $70 >80k with a weekly rental return of $180 > $200.
Not a great return but if we did it, it would have been an interesting experience and we could have spent some down time away from the reno out in the W.A gold feilds camping exploring and metal detecting. Which we have enjoyed doing.
The other bonus woukd have been spending time living in Geraldton. Some where we havnt been before.
@Lindsay Stewart G'day mate! So if I'm reading that right, you're in the US, physically? I am too, I have 9 doors here now. I have a commercial lender that I use here in Missouri. I've been set up in the US for about 14 years now.
There seems to be a few Aussies that are drawn to the positive cash flow available here in the US. The dream is alive and financing is the single biggest issue for them. Private money, hard money lenders are the probably the most likely source for them to make it real.
You mentioned the LLC. I like where that idea is headed, but would you have to have the LLC for 2 years to build a credit score before using it to secure a loan? This is an interesting concept.
Conversely, if I wanted to invest in Australia, I don't know how I'd get financing over there.
Then the other flip of the coin is that, for me, I do not like long distance relationships. I like to be able to see, hold, cherish and love my properties.
Hey Michael, no i am based in Melbourne Australia. Generally travel a couple of times per year to visit :)
From the US, investing in AU would be difficult without financing for sure, high entry prices here can certainly make it prohibitive.
From a lending standpoint in the US, I preface by suggesting to have a chat to your accountant, but i do believe once you have lodged 2 positive tax returns with the IRS through your LLC, you do build enough of a credit score to access conventional funding. Need a bank account in the US as well, and a couple of other hoops to jump through but certainly possible
Question, what is a good platform to begin searching for properties.
Tried Red Fin ...what are some othe the others you guys would recommend ?
My sister in-law is from the Somerville area of NJ, so might start my search from there and expanding it as I go.
Question, what is a good platform to begin searching for properties.
Tried Red Fin ...what are some othe the others you guys would recommend ?
My sister in-law is from the Somerville area of NJ, so might start my search from there and expanding it as I go.
Zillow and Trulia. Just take their property estimates with a grain of salt.
Thanks Jordan , will check those two out
Cheers
Real estate sites in the US are very different to the site here in Oz .
I think it will take a while to get the hang of how they work
@MichaelKing @ Pat L
I have a couple of unencumbered properties here in Oz and have spoken with the bank about using one as security on an over draft.
I want to use this OD as my seed money for when we visit the US later in the year possibly going there May -June and staying through until to August- September.
I have been searching non stop these last few days on Redfin Zillow and Trulia
Mostly concentrating around New Jersey and upstate New York in and around Albany.
I have a sister in-law living in Somerville Nj and good friends living in Schenectady NY
I have looked at a few places that I like and even messaged a real estate agent in Albany asking for more details on the property ( no reply as yet) i think has potential. But with zero experience purchasing in the US , I am unsure what is my next move apart from contunuing to do lots of reasearch and wait till we go there physically to visit properties
Is it possible to connect with a real estate agent, and like here in Australia pay or have some one ( my sister in-law) go to inspect the property on my behalf and give me a report on its condition and any requirements,restrictions ,details etc.
Something my sister in-law could do for me ?
Or do I just keep twiddling my thumbs do research and wait till we go there.
I would like to get something moving in advance of us actually flying there so that when we did arrive ,we could hit the ground running so to speak..
I hope some of you guys with much more experience, could give me some ideas on does and donts and some feed back on the steps I need to take .
Thanks
Bryan
Connecting with an agent seems like the appropriate next move. Through some quick searches yesterday, I saw some month-to-month rentals in my town (East Brunswick, about 25 min from Somerville), but I’m sure they have those types of contracts in NJ and NY. Happy to help if you have any questions on towns/areas in NJ or if you need recommendations on real estate agents as I have a few friends who I’d recommend.
Connecting with an agent seems like the appropriate next move. Through some quick searches yesterday, I saw some month-to-month rentals in my town (East Brunswick, about 25 min from Somerville), but I’m sure they have those types of contracts in NJ and NY. Happy to help if you have any questions on towns/areas in NJ or if you need recommendations on real estate agents as I have a few friends who I’d recommend.
Thanks Kristen
What I found , when I try and send an inquiry to an agent through zillow redfin and tulia website , I cant contact the agents with out having a local US phone number .. Im logged in with my own account but the site treats me as being in the US which is preventing me from contacting agents..
Ideally I just need to be able to email the agent in the first instance and have them send me more details/info , then if I want to take things further , I would call them during their office hours..
Its a bit frustrating.
My Sister in-law lives in Raritan very near Somerville NJ
Another strategy I was considering was a property hack and have the sister in-law live on the property , but I believe the properties around where she lives , would be on the high end of the market , hence why I was looking at areas that are with in my budget but near or with in easy drive for her. The alternative was to search around Albany where my son has stayed in the past with our friends who live there and also look for multi family properties.
W
@Bryan Yokoyama NJ housing costs in general are going to be on the higher end compared to other states in the US, particularly when looking in Northern half of Jersey. You’ll find the more south you go, the lower the prices and taxes (they are even lower if you go into Pennsylvania, for which I’d recommend Bucks County).
I haven’t looked into the market in Albany, but considering it’s further away from NYC, the prices might be lower. Taxes might be lower in Albany as well. Taxes should be a consideration in your search NJ has one of the highest property taxes in the US and they will vary by town.
Thanks again Kristen.
I have noticed that and around Trenton the prices seem a lot lower than the northern part of the state. I gather proximity to NY city makes the area more attractive for commuting etc.
Property taxes are something I had not yet considered but is something I always ask about when I speak with an agent..
Looks like I need to have a lot of patience and do a lot more research.. maybe google the agents name and see if I can track down an email address to contact them or just bite the bullet and call them in office hours..grrrrr LOL
My name is Prem from Sydney, Australia. I am looking for a breakthrough to invest in the residential market for positive cashflow. How do I get started? Can I set up the LLC and apply for an EIN number remotely?
How much money need to invest is required for $500/month cashflow? What are the regions in the US that have greater cash flow and a secure market?
Please advise.
Welcome Prem
I am from Lake Macquarie NSW and also looking at investment opportunities in the US ..
Bryan, Have you starting look at the potential deal?
Bryan, Have you starting look at the potential deal?
No yet Prem
Everything I am doing now is research and learning how things are done in the US
Hi Bryan, I am on the same boat as you do.
My name is Prem from Sydney, Australia. I am looking for a breakthrough to invest in the residential market for positive cashflow. How do I get started? Can I set up the LLC and apply for an EIN number remotely?
How much money need to invest is required for $500/month cashflow? What are the regions in the US that have greater cash flow and a secure market?
Please advise.
Welcome Prem!
Yes, you can start an LLC and apply for an EIN. I know of a US banking option also. I did this all from Australia.
Most Midwest states offer decent cash flow.
@Jordan , Will you be able to help me to get started? Also, let me know the regions in the midwest states?
@Jordan , Will you be able to help me to get started? Also, let me know the regions in the midwest states?
Yes, happy to help Prem.
@Bryan Yokoyama @Prem Kumar this thread has been kept alive; sorry I didn't see your posts earlier. I've been out of town with work. What part of Lake Macquarie? I grew up in Booragul; mum still lives there. Brother in Toronto. Lots of relos still there actually.
The US is the land of opportunity for sure, but be careful of rushing in. I feel your sense of urgency and that is a concern. Looking at places like Albany, as @Kristen Hernandez says, is a pricey place, but your sister can be your boots on the ground? That will be extremely helpful but you still have to know what you are getting into, vs what you want exactly. I see places in St. Louis that are really cheap....but step one foot off the curb into the next block and you could really be entering a neighborhood you don't want. Here, literally, one block can make or break the deal and your bank. My colleague just offered me her 4 rental properties for $180K; they are bringing in $2800 a month gross. While it shatters the 1% rule, I didn't feel comfortable with the neighborhood. Cash flow was there, but not as much as would make it worth while for me; for several reasons.
Possibly worth considering would be a turn key company, but i've heard mixed reviews about them. Some have good reputations, some do not. They mostly cater to people doing the long distance thing, such as what you are doing. They have you buy a place that's been rehabbed, with a tenant already in place. Could be an option for you.
As far as using Zillow to "contact the agent", don't waste your time clicking that button. Every time I've done that, I get a call from a zillow agent and never the listing agent. It's a PITA and absolute waste of time. Email them is one way, but don't expect a response for several days if at all, depending on how busy they are.
What is your goal here? Buy and flip? Buy and hold? What's your budget for the purchase and repairs or flip? Do you know for sure you can get the money to do it? Are you going to use property management? Is your sister going to be an active participant in any of it? I like to buy them close to where I live so I can visit to make repairs; I'm a hands on guy.
What's all the EIN and LLC excitement? Do you NEED to have a business to get into real estate over here?
Hi Michael
Lived at Bonnells Bay the last 18 years and we shop at Toronto. My parents bought land and built a house at Wangi Wangi in 1980 for their retirement moved there in 1990 then my dad passed away a year later.
When I returned from living over seas with a wife and 2 children (3 now) in 2002 she sold the Wangi house and we moved to Bonnells Bay. We have been here ever since.
I agree my sister in-law will be a valuable help. She is able to relocate if needed , so we are not restricted to any one area or state and she can also help financially as well as being the person on the ground to keep an eye on things.
My stratergy thus far has been to buy rent and hold, but IF i do invest in the US , then I prefer multi family properties
Duplex triplex or a quadraplex,to renovate and rent.
One option could be that my sister in-law lives in one as an owner occupier and rents the other/others to qualify for finance with the rent servicing the loan.
But that is something I would have to talk with her about.
Right now my goal is research and gaining a better understanding of how things are done in the States before jumping in ..
@Michael King, I feel it is a better option to have LLC and EIN before I get started. How much cost I am looking for it? There are a lot of deals in which I can find the realtor/Trulia website. But the problem to pick the right area or even the street to look in an area. How can I get started to filter a street/neighborhood in an area?